Quoted from BobC:The boards for sale have games that were re-written new from scratch, not the original code / roms,
and synthesize a reasonable likeness of the original sounds.
That's my understanding of how they get away with it if not licensed?
The boards are running multiple versions of X-Mame. Each version seems to have a hack that removes features from X-Mame, such as allowing vertical and horizontal games. Though if you have both types of boards (H/V) you can easily copy XMame from one board to the other and run even more games.
They did put some protection on the boards to prevent people from copying extra roms but they are pretty easy to hack. It's funny, they are ripping off all the game companies by including roms on their boards, but yet they feel that people should not be allowed to rip them off.